Upstox - Safe, Reliable & Trustworthy Broker

Upstox is a trusted and reliable stockbroker for many reasons including a strong reputation of its investors, decade long experience in broking, technology-first approach, and no major violations reported to date.

Upstox began its retail operations in 2012. In a short span, the company became a popular online discount broker with lakhs of active customers. The company is a member of BSE, NSE, and MCX exchanges. It is also registered with SEBI, NSDL, and CDSL.

Upstox is an online brand of RKSV Securities India Pvt Ltd. It is backed by reputed investors like Ratan Tata, Tiger Global, and GVK Davix. The company has raised funds in 2 rounds. In 2019, Tiger Global invested $25 million (around 190 crores) into the company. Upstox investor (as of 1^st April 2020) includes:

• Tiger Global Management: 31.1% stake
• Kalaari Capital Partners: 15.21% stake
• GVK Davix Technologies: 2.54% stake.
• Ratan Tata: 1.33% stake

The company is regulated by SEBI. It is regularly audited by stock exchanges and depositories. No major violation by Upstox is recorded by any of the auditors in the last 8 years (by April 2020).

A lot of traders, especially those who are new to markets, often ask; is Upstox safe?Is Upstox reliable?Is Upstox trustworthy? In this article will do a check on Upstox and identify how safe it is to do business with Upstox.

About Upstox

Here are a few key facts you should know about Upstox:

• Incorporated in 2012 by 3 young 1st generation entrepreneurs.
• 2^nd largest discount stock broker in India in terms of customers, daily exchange turnover, etc.
• Ratan Tata, Tiger Global, and GVK Davix have invested in the company.
• Lakhs of active customers from around India.
• Profit-making company.
• It is among the fast-growing financial company in India.
• In-house build trading platform Upstox Pro (Web and Mobile)

Why Upstox is safer than other brokers?

1. Economical Business Strategy

   Upstox runs on a low-cost online business model. Almost all services are offered online from a remote location. They don't have offices across various cities and towns. This helps the company offer low brokerage plans as it saves a lot on operational expenses like rent, salaries, etc.

   This business strategy makes them sustainable and less risky.

2. Highly Scalable Business Model

   Upstox online business model is highly scalable. The company continues to add thousands of customers every month without compromising in quality and risk.

3. No Advisory Services

   Upstox doesn't offer stock recommendations or financial advisory services. The company only offers online trading services. So, there's no conflict of interest or financial motive to push a particular product to the customers.

4. No Margin Funding

   Upstox is purely into stock and commodity brokerage business. It doesn't offer risky products like margin funding to customers for trading.

5. No client shares in the pooled account

   Upstox doesn't keep client shares in a pooled account. All the shares are transferred to your demat account on T+2 days. As Upstox customer's demat account is with CDSL (one of the two national depositories for securities), the shares are safe in the demat account.

6. Simple Brokerage Plan

   Upstox charges flat Rs 20 per executed order for delivery, intraday and F&O trades at NSE, BSE and MCX. The same plan is offered to every customer including HNI's. No one gets special treatment. Having a single rate for all customers reduces operational risks.

7. No Proprietary Trading

   Upstox was founded as a proprietary trading company and later entered into retail brokerage space in 2009. Upstox stopped its proprietary trading business in 2017. The company doesn't do any more proprietary trading.

   Read Proprietary Trading by Stock Brokers in India - A risky proposition

8. Trusted by Lakhs of Customers

   Upstox services are trusted by lakhs of active customers from across India for many years. The loyalist of customers shows the trust Upstox made over the year.

9. Trusted by Popular Investors

   Upstox is backed by leading names in the industry like Ratan Tata, Tiger Global, and GVK Davix. Investments by such names in a company mean 2 things, one that the investors have high confidence in the management of the company, its corporate practices and second that the company has the potential to grow. The funding also shows that the company is serious about its expansion plans and is thinking long-term.

Upstox Memberships

Upstox is registered with SEBI and leading stock exchanges like NSE, BSE, and MCX. All stockbrokers in India must register with SEBI and follow its guidelines. A stock broker also needs to be a member of a stock exchange to be able to give its customers access to the exchange. All stock brokers registered with SEBI and stock exchanges need to comply with their regulations and their accounts are regularly audited. Upstox has not been reported of any regulatory or other violation.

Upstox is a DP (Depository Participant) with NSDL and CDSL, the two Central Depositories that opens and manages demat accounts in India. This membership allows Upstox to play the role of intermediary between the customers and the CDSL.

Upstox Membership Registration Numbers

• CIN number (RKSV Securities): U74900DL2009PTC189166
• CIN number (RKSV Commodities): U74110DL2012PTC236371
• SEBI Registration No: INZ000185137
• NSE Member Code: 13942
• BSE Clearing Code: 6155
• MCX Member Code: 46510

Conclusion

Upstox is a safe, reliable and trusted stock broker. It has all the right credentials to become the top online stock broker in India. The company has built a strong customer base in a short period which speaks for its quality services. The company has won many awards in various platforms. In short, your money is as safe with Upstox as with any leading stockbroker.

Must Read:

• 10 Steps to safeguard trading and Demat account

Frequently Asked Questions

Upstox Competitors Review

Information on this page was last updated on Friday, October 4, 2024